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HomeMy WebLinkAbout14 Attachment 1iFoster | Presentation Title 1 TPUD Broadband Committee Recommendations March 2, 2022 Truckee Community Broadband Maximize Impact for All Truckee iFoster | Presentation Title 2 TDPUD Broadband Committee Meeting our Community Priorities •Our Truckee Community wants the TDPUD to prioritize broadband •This Committee has come together to inform the Board on the NEED, OPTIONS, and RECOMMENDATIONS for ensuring Broadband priorities are met •Goals of Broadband Committee: 1.Identify the level of broadband the community requires 2.Identify key stakeholders, potential partners, and local resources 3.Develop a scope of work for a feasibility study 4.Identify options for a potential organizational structure 5.Identify funding opportunities Sources: TDPUD Broadband Committee Kick Off Meeting, September 23, 2021 iFoster | Presentation Title 3 Act Now to Maximize Benefit for ALL Truckee Committee Recommendations The question isn’t whether to act, but rather how to do so in the most equitable, beneficial way. Broadband is a utility necessary for the well-being, economic growth, and safety of ALL Truckee. Truckee PUD is uniquely positioned to develop a town-wide infrastructure because of its existing assets (i.e. poles, conduits, customer base). iFoster | Presentation Title 4 TRUCKEE COMMUNITY NEED iFoster | Presentation Title 5Sources: FCC Household Broadband Minimum Standards and Business Minimum Standards, 2015; Residential Broadband Forecasts, Technology Futures Inc, 2002 What is Community Broadband? State of Truckee Broadband Access •Broadband in Truckee is a community issue involving the needs of local residents, second homeowners and tourists, local businesses, our town institutions and infrastructure •According to the FCC, resident requirements for household with 2 more devices using more than one high demand application (i.e. streaming, video conferencing, gaming, telecommuting) is 25/3 Mbps **Note- This is an old standard from 2015, Congress is working on a min 100/25Mbps minimum requirement •For businesses, generally it is 10-15 Mbps per employee or user (i.e. coffee shop customers on WiFi) is the minimum required equating to 1 Gbps symmetric, but usually 5-10 Gbps are necessary •As distance learning, video streaming, video conferencing and telecommuting increase, household needs will require 1 Gbps up/down speeds •Within 5-10 years, many broadband planners anticipate that 10 Gbps up/down will be the required norm for all (households and businesses) iFoster | Presentation Title 6 •In residential neighborhoods of Truckee, public fixed test results show service providers are barely delivering minimum speeds •This is without strains to the system (i.e. holidays, pandemic with distance learning and increased telecommuting) •Reality of day-to-day connectivity is far worse Barely Delivering State of Truckee Broadband Access Sources: California Interactive Broadband Map, https://www.broadbandmap.ca.gov/, 2021 iFoster | Presentation Title 7 Truckee Broadband Reality Check Nov 22, 2021 Sources: Postings on Truckee Tahoe People Facebook Group iFoster | Presentation Title 8 Community Broadband What is Broadband for All? Truckee Residents Tourists Local Business Community Anchor Institutions Town Safety Smart Grid ISPs iFoster | Presentation Title 9 Residents: Reliable, Affordable Truckee Community Demand •16,474 residents as of 2019 •23% earn less than $50,000 per year •Suddenlink Internet starts at $89.99 monthly plus taxes/fees •Current availability is below minimum standards, yet demand is ever increasing as households multiply and individual household broadband demands increase •Distance learning •Home office / telework •Communications (cellular offloading to WiFi) •Entertainment (streaming media) •Home security •Smart home Case example Over 4,000 Truckee K-12 students have had to go to distance learning during the pandemic and weather events. Many use cellular networks via smartphones and hotspots to get online. This was not always because they lacked Internet at home, but also because their home Internet was insufficient. Sources: Data USA 2019, Housing hurdles: Advocates call for those with 2nd homes to help ‘land locals’, Rebecca O’Neil, the Union, Oct 18, 2021, US Census Bureau, July 1 2020 estimates, Truckee Tahoe School District, 2021; Suddenlink pricing packages for 100Mbps (in 1Gbps markets) and 50Mbps (in 450Mbps markets) iFoster | Presentation Title 10 Tourists: Flex Up to Meet Peaks Truckee Community Demand •225,000 tourists visit Truckee annually spending ~$150 Million, supporting ~1,500 jobs and generating ~$5.6 Million in local taxes •Tourists and second-home owners tend to be more affluent and come with their own suite of WiFi-enabled equipment and toys •Current availability drops when tourists and second-home owners flock in, but they expect service equivalency to what they have at their urban and suburban homes •Communications (cellular offloading to WiFi) •Entertainment (streaming media) •Distance learning •Remote work/telework •Home security •Smart home Case example On a holiday weekend, the population of Truckee exponentially increases the number of people online, all demanding above what is currently being delivered in residential neighborhoods. Sources: Dean Runyan Associates study, 2017 iFoster | Presentation Title 11 Businesses: Core to their Existence Truckee Community Demand •1,056 businesses in Truckee employing thousands of residents, and providing $4.9 Million in local sales tax revenue •Ever increasing dependence on the Internet, cloud services, and constant monitoring •Point of Sale (POS) systems •Reservation systems •Banking and transaction management •Inventory management •Communications (cellular WiFi offloading) •Communications (Zoom, MS Teams, etc) •Community WiFi Hub •Security •eCommerce •Cloud storage Case example On any given business day, Wild Cherries needs the Internet for POS, inventory management, scheduling employees, banking and transaction management, communications, and as a community WiFi hub for the customers Sources: Truckee Chamber of Commerce, truckee.com iFoster | Presentation Title 12 Community Anchors: Increasing Need Truckee Community Demand •Schools, libraries, healthcare providers, community colleges and vocational centers, public media, public housing, and community non-profits •Ever increasing dependence on the Internet, cloud services, and live (real-time) for critical community needs of health, education, and communications •Telehealth •Live diagnostics and surgeries •Distance learning hubs •Communications (cellular WiFi offloading) •Communications (Zoom, MS Teams, etc) •Community WiFi hubs •Cloud services and storage •Security Case example Tahoe Forest Hospital touts that telemedicine offers state-of-the-art cancer care to rural areas (Nov 2017 Chemotherapy Foundation Symposium in New York). However, while the hospital has dedicated fiber, their patients have “five days of no Internet” iFoster | Presentation Title 13 Safety: Wildfires & Life Emergencies Truckee Community Demand •In 2021 the Caldor Fire destroyed 782 homes, 18 businesses in and around the Tahoe Basin •The cost of fighting the Caldor Fire is $269.5 Million, not counting property damage •With ever increasing wildfire risks, environmental events (i.e. snowstorms, earthquakes, floods) effective real-time monitoring and communications is necessary to save lives and properties in the Tahoe Basin •Intelligent connected technologies (i.e. thermal and chemical sensors) •Drone patrols •Artificial intelligence •Emergency communications •Emergency broadcasts (i.e. reverse 911, Nixle alerts) Case example In 2021, California experienced 8,619 wildfires burning 2,569,009 acres which is almost triple the number of fires and more than 20 times the acreage of the five-year average Sources: Caldor Fire Archives, Wild Fire Today, 2021, Wikipedia iFoster | Presentation Title 14 Utilities: Power Reliability Mgmt. Truckee Community Demand •Smart Grid technology can help better manage our peaks of visitors and usage driving our power loads •Better power delivery and management is possible once reliable Internet links every utility customer for two-way communications •Ever increasing intermittent, high demand load management will be needed (i.e. smart car charging, visitor peaks) •Minimize brown-out and black-outs through automatic power reductions – beyond one-way smart meters •Requires symmetrical fiber optic connections Case example In addition to utilizing the network to deliver the world’s fastest internet and other fiber optic services, Chattanooga’s fiber to the home network also serves as the communications backbone for a smart grid that has delivered almost $2.7 Billion of value in a decade including preventing 44,000 customers from experiencing power outages for hours or days during tornadoes and storms. iFoster | Presentation Title 15 ISPs: Shared Fiber Backbone Truckee Community Demand •Each ISP (cable, fiber, DSL, cellular) is operating completely independently which makes Truckee an expensive market to serve •Every private provider has a huge infrastructure expense which makes it harder for them to expand, more expensive for them to upgrades •With monopolies in place, Truckee customers suffer since there is no incentive to improve •If we unify the backbone fiber (the universal piece) and take burden off of ISPs, it will allow for increased competition and more consumer choice •Truckee PUD has existing assets to make this happen Case example SiFi Networks builds and operates open access fiber networks delivering 10 gig enabled networks to homes and businesses and smart grid services with a focus on closing the digital divide and fair access to everyone. iFoster | Presentation Title 16 Truckee Community Broadband Imagine Access for ALL Truckee Residents Tourists Local Business Community Anchor Institutions Town Safety Smart Grid •ISPs •Reliable •Affordable •1Gig symmetrical & scalable (future proof) •Always On •Fast •Core to their success •Flex to peak demand •Similar experience to what they get at home in urban / suburban •Rural but connected to cutting edge medicine, education, supports •Effective power mgmt •Reduce black outs •Equity in access •Early, safe warning systems •Effective communications •Emergency broadcasting •Shared backbone •Decreased ISP cost •Increased consumer choice iFoster | Presentation Title 17 BUSINESS MODEL OPTIONS iFoster | Presentation Title 18 Potential Business Models Broadband Business Benchmarks TDPUD Ownership Model TDPUD builds and maintains fiber optic network, uses it for Smart Grid technology, and (as a separate entity) offers internet access services directly to customers. Leases fiber access for Smart City technologies to Nevada/Placer Counties and Town of Truckee. TDPUD Open Access Model TDPUD builds and maintains fiber optic network, uses it for Smart Grid technology, and brings on multiple ISPs to offer internet access services. Leases fiber access for Smart City technologies to Nevada/Placer Counties and Town of Truckee. Private/Public Partnership Model TDPUD jointly builds and maintains fiber optic network with an ISP. TDPUD uses it for Smart Grid technology. ISP offers internet access services directly to customers. One or both entities lease fiber access for Smart City technologies to Nevada/Placer Counties and Town of Truckee. ISP Ownership Model ISP builds and maintains fiber optic network and offers internet services directly to customers – retail or open access wholesale. Leases fiber access to TDPUD for Smart Grid Technology. Leases fiber access for Smart City technologies to Nevada/Placer Counties and Town of Truckee. iFoster | Presentation Title 19Sources: City of Sandy Oregon, EPB Chattanooga, Jefferson PUD, Ammon Fiber, SiFi network, Plumas Sierra Telecommunications Potential Business Models Broadband Business Benchmarks Model Type Overview Example Build-Out Funding Time to Build Ownership Model Community owned. PUD identified need and utilized govt grants to fund infrastructure build outs Sandy, OR Chattanooga, TN Federal funding for smart grid build outs 2-3 years (with expectation of using existing poles) Open Access Partnership Currently offered to select businesses. Partnered with a few different ISPs. Developed through 2 consultation rounds Jefferson, WA Ammon, ID Federal funding for open access infrastructure. Phased: low-income neighborhoods w high needs first. Expansion based on funding availability. Public/Private Partnership with private entity which owns total process but could be offered to PUD clients Yuba City SiFi Network Privately held funding with corporate entity 2-3 years (with expectation of using existing poles) Co-op / ISP Co-owned by service users and ISP Plumas Sierra Telecommunicati ons Grant funding 2-3 years (with expectation of using existing poles) iFoster | Presentation Title 20 Ownership Model Broadband Business Models SANDY, OR •Network started in 2002, upgraded to fiber in 2014 •Fiber optic network to home infrastructure allows for quick response •Infrastructure designed with fail-safe measures in place including redundant fiber paths out of Sandy to provide an incredibly reliable connection •Able to meet the 2020 quick shift to online work and learning •Continual revision of continuity plans for how Sandy responds to events and disasters in order to prevent or minimize damage to service and network CHATTANOOGA, TN •Launched in 2009 and leaped to national attention in 2010 when Chattanooga became “The Gig City” offering 1Gig residential internet speeds, the fastest residential speeds in the country •In 2015, first in the world to offer 10Gig to every home and business in community •One of the nation’s smartest smart grids. Has delivered almost $2.7 Billion of value in a decade including preventing 44,000 customers from experiencing power outages for hours or days during tornadoes and storms. •Awarded $111 Million in federal stimulus from DOE for expediting build and implementation of smart grid Sources: City of Sandy Oregon, EPB Chattanooga iFoster | Presentation Title 21 Open Access Model Broadband Business Models JEFFERSON, WA •Fiber network built 2013. PUD currently has ~50 miles of fiber across the county. •Most of the fiber serves internal PUD needs, connecting facilities and monitoring equipment •Because PUDs are limited to providing wholesale and not direct access to its network, few businesses and resident have access. •Very phased approach: started with low income and went after expansion opportunities based on grant funding •Partnered with ISPs to provide access AMMON, ID •PUD built network and all ISP providers pay a certain amount per month to cover backhaul costs •EntryPoint Networks is the company that consulted with Ammon PUD and is currently working with Chico •Third party ISPs Sources: Jefferson PUD, Ammon Fiber iFoster | Presentation Title 22 Public / Private Model Broadband Business Models Yuba City, CA •SiFi Network partnership with city “fibercity network” •SiFi Network projects focus on closing the digital divide and providing access to all residents and businesses •SiFi Network funds and constructs network to meet current and future needs •10Gig enabled. Future proof bandwidth and connectivity •Privately owned open access network Sources: SiFi Network – Yuba City iFoster | Presentation Title 23 Coop / ISP Model Broadband Business Models Plumas Sierra Telecommunications •Started ~10 years ago with wireless internet service •Electrical coop where service users own the network •NOTE: Broadband network is a separate entity for the rest of Plumas Sierra telecom business •Fiber funding through federal infrastructure grants •Currently hold contract for enterprise connectivity within existing infrastructure •NO home connection currently and none planned Sources: Plumas Sierra Telecom iFoster | Presentation Title 24 Case Example Findings Broadband Business Models •There is a significant and growing need for broadband access and PUDs nationwide are responding by providing broadband solutions •Every community is different and has deployed solutions based on their community make-up, existing infrastructure, ISPs, and available funding •Priority for other PUDs has been and continues to be focused on low income resident needs. PUDs provide subsidized access through digital divide funding •Every PUD case example started by identifying the community need for broadband as a utility iFoster | Presentation Title 25 EXISTING ASSETS ASSESSMENT iFoster | Presentation Title 26 TDPUD 3 Types of Infrastructure Existing Assets •Long range regional fibers: that span from Sacramento to Reno which permit POP (points-of-presence) interconnectivity to interconnect with telco grids and ISPs •Medium range fiber elements: 58.5 miles of existing fiber currently used to connect TDPUD’s facilities in and around Truckee and the north lake region with 56 additional miles of fiber planned over the next 5 years •Datacenter rack equipment and power backup systems: suitable for server hosting. •Consider opportunities to partner with existing carriers and service providers (i.e. asset purchase, leasing) iFoster | Presentation Title 27 Plumas Sierra Relationship Existing Assets •Team met January, 2022 with Plumas Sierra Telecom •PST has been in a “trial” public/private partnership with TDPUD where PST has focused on “low hanging fruit” ISP customers that already have fiber to premises or can pay for the fiber trenching to interconnect (i.e. hospital, HOAs, TDPUD) •PST is acting as the ISP for the connected customers, using the TDPUD existing network, plus additional interconnection at the premise edges •Small staff although 24/7 does exist for critical customers like the hospital or TDPUD •Opportunistic relationship where Plumas Sierra is not actively marketing their services or seeking to provide Broadband for All solutions Pricing Not Broadband for All with fiber only 50Mbps/10Mpbs starting at $60/mo. Full Gig Fiber service at $190/mo or more (if business plan and SLAs) PLUS trenching cost ($2000 - $200,000 depending on customer location) iFoster | Presentation Title 28 New Elements Required Infrastructure Gaps •Telco grade BGP4 routing and switching gear (Brocade/Ciena-style backend systems) that can act as the network backbone for local ISPs and provision subscription circuits •Last mile connectivity to the majority of the homes and businesses in Truckee (i.e. fiber, cable, microwave or campus-style 5G) •24/7 customer support and respond with staff trained in telco/ISP operations iFoster | Presentation Title 29 TDPUD Favorably Positioned Achieving Community Broadband Existing Assets Existing Network All Models Possible 1.OWNERSHIP and EXPERIENCE: great set of core infrastructure; current partnership with Plumas Sierra has been a good initial experiment albeit restrictive 2.EXISTING NETWORK: existing network could potentially become the backbone for either a fiber connected or a 5G-Enterprise-Campus style network to reach all residents and businesses with air vs trenching options 3.ALL BUSINESS MODELS: all models are possible for general community access and a variety of last mile technology options exist iFoster | Presentation Title 30 BROADBAND IN TRUCKEE: RECOMMENDATIONS iFoster | Presentation Title 31 BROADBAND IN TRUCKEE MATTERS Existing broadband options in Truckee to do not meet current need, let alone anticipated future demand. TDPUD SHOULD TAKE A LEADERSHIP ROLE Broadband should be considered a utility. TDPUD has an existing suite of assets that can serve as a foundation from which to achieve Broadband for All. TDPUD is not limited in business models or infrastructure solutions. As we invest in broadband, our community needs to retain control of our infrastructure investments. PARTNER FOR SUCCESS Partnerships are potentially feasible and should be investigated. However, incumbent ISPS fall short of meeting current needs. By consolidating services and offering a shared infrastructure, we allow current and future service providers to share the expensive pieces of infrastructure, rather than re-inventing multiple parallel networks and delivering uneven services. This creates a level playing field to allow providers to compete on their levels of service, rather than whoever happens to own the wires nearby. FIBER IS THE FUTURE Fiber is the backbone of every high-speed network today, already providing long-distance high-speed infrastructure transit beyond 100Gb, and beyond 10Gb in passive (last mile) links, leaving room for expansion for many years. It is a longer-term investment in the prosperous future of Truckee. Broadband for All through Open Access TDPUD Model Committee Recommendations iFoster | Presentation Title 32 Suggested Next Steps Committee Recommendations 1.Agree that broadband should be seen as a utility and as TDPUD is well positioned to facilitate the development of Broadband for All Truckee 2.Encourage Truckee residents and business participation in the upcoming Nevada County Broadband survey 3.Engage consultants in developing a strategic broadband plan for the entire Truckee community. Consultant must have PUD, rural community, funding, and broadband business model experience 4.Understand the funding landscape including what will be available at the county, regional, state and federal levels for planning, engineering, design, and implementation 5.Engage Town of Truckee, Nevada County and Placer County in collaborative planning 6.Build partnerships with multiple ISPs; both new and existing 7.Utilize existing resources such as the Fiber Broadband Association toolkit. Leverage the EUCI Broadband Deployment Essentials for Electric Cooperatives and Municipal Utilities iFoster | Presentation Title 33 Truckee Residents Tourists Local Business Community Anchor Institutions Town Safety Smart Grid ISPs In 2016, the UN declared access to the Internet a basic human right It’s 2022, time for Truckee to embrace Community Broadband